Ahead Of Hershey's Q1 Results

(RTTNews) - Chocolate maker Hershey Co. (HSY) remains focused on growth and said it will continue to invest in its core brands in the U.S. and key international markets. Additionally, the company will continue to invest in advertising and related consumer marketing, including a greater shift to digital and mobile communication. Meanwhile, the company's first-quarter results may reflect challenges related to changing U.S. shopping habits and volatile international markets.

The company is due to release its first-quarter results before the bell on Tuesday, April 26, with analysts polled by Thomson Reuters estimating earnings of $1.07 per share on revenue of $1.90 billion. Analysts' estimate typically exclude certain special items.

For fiscal 2016, the company projects reported earnings of $4.18 - $4.23 per share, including net pre-tax GAAP charges of about $0.15 - $0.18 per share. Nineteen Wall Street analysts have a consensus earnings estimate of $4.34 per share for 2016.

The company estimates full-year reported net sales will increase around 2.0%, including unfavorable foreign currency exchange of about 1 percentage point. Excluding unfavorable foreign currency exchange rates, full-year constant currency net sales growth is expected to be around 3.0%.

Over the long term, Hershey expects constant currency net sales growth of 3% - 5%. Given the scale advantages of the company's North America business and a balanced approach to international investments, the company expects to generate long-term adjusted earnings per share growth of 6% - 8%. North America net sales are expected to be driven by confectionery and snacks growth, including Krave meat snacks distribution gains.

In the last quarter, the company reported net income of $213.38 million compared to $202.51 million last year. On a per share basis, earnings rose to $0.98 from $0.91 a year ago. On an adjusted basis, earnings were $1.08 per share. Analysts expected earnings of $1.05 per share.

Net sales for the quarter declined to $1.909 billion from $2.010 billion in the prior year. Wall Street was looking for $1.98 billion.